SPOK - Earnings call transcript Q4 2019

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Operator

Good day and welcome to the Spok's 2019 Fourth Quarter and Year-End Investor Call. Today's call is being recorded. On line today, we have Vince Kelly, President and Chief Executive Officer; Mike Wallace, Chief Operating Officer and Chief Financial Officer; and John LaLonde, Chief Technology Officer.

At this time for opening comments, I will turn the call over to Mr. Wallace. sir. ahead, go Please

Mike Wallace

you full us year Thank fourth our quarter and investor for morning. for joining XXXX Good update.

statements call Before I we to include Spok's conference performance. and uncertainties want results, subject forward-looking may to remind future risks discuss everyone that relating our and that are operating business to financial today's

company's upon as statements results. or the plans, statements estimates revenue, only of statements predictive Such estimates or expenses and These are give actual date other conference dependent future assurance the may include income events conditions. future as not as to of well and call on which any intended represent this to are

Spok's statements. actual in materially anticipated those these results forward-looking could differ from

to be review Form related expect our XXXX are uncertainties. environment reasonable, assumes today with risks filings forward-looking and that to note Although, and Commission. no which Risk our compete the to contained filed statements Securities they Spok in obligation that and calls. statements or these based to update documents XX-K, and upon subject Please are section and present which we past business assumptions Please any operations relating Exchange Factors in we file from to believes later the company conference the

turn call With that, I'll Vince. the over to

Vince Kelly

you and joining Thanks, morning us Thank Mike, for everyone. good on today's call.

as improvements XXXX of Spok we believe new platform, and in XXXX we our and begin encouraged are quarter and integrated well in our communication by for positioned fourth We cloud-native the Go. sell sustained the performance are market we

XXXX cloud-native provides Year. on significant enter the progress new us with the R&D platform we our made along performance in New team Our confidence as our

underscore outlook. get want details strategically full year, and we to plan and our to quarter of before the we the respect with are I business into where So

center of a single a learning, SaaS to cloud-native solutions. healthcare As contact offering poised mobility, built workflows new platform for clinical transform best-in-class strategy was we are our last developed model. platform cloud-based Go believe a integrated decade, announced architecture, landscape a to or and enter week we delivery foundation The Software-as-a-Service of Spok we the an on on

has Sales are to will coming over on long-term we revenue to on and ramp for long so. environment, time, intend our we do value that creation deliver. reward competitive time customer constituents. been effort track We and but evaluation This up all know and a we feedback, of our the success and time believe will based it's

case last we Care development us and years teams the been long-term from engineering has the goals, the separate need to several timeframe. of to short existing maintain the be our platform for the a for As in achieve day-to-day Spok forward progress order our to solutions support to want as and much possible, developers Go. platform over Spok Spok issues distractions Connect from as We unfettered make new

significant Go this Spok of of take platform premise-based these costs increased made development strategy Go in we and resulted a pricing, associated forward, portions offset have our and to To going both our and margins reflect to development continues been that based with Spok solutions Connect Care the developers. U.S. in moved speed Spok few lower in years. structure. an past in bring change our has around reductions in offshore advantage on focus XXXX support increased will labor This

is to in service. but platform sell business transitioning our this talked approximately to will our a are our expect about our we but upgrade, continued that transition easier much customized and premise-based solution. XX% and be to for solutions be our platform, time, we We've ultimately to XX% solutions from legacy For a R&D future. software investment before This on reflecting new cloud-native our configurable result approximately XXXX, take in spend of expand,

on focused effective wireless remain operation to and of systems. the continue infrastructure also our efficient support and We

allows our revenue plan. exceed Our well provide our in product base quarterly basis. software development, support as revenue on investment allocation a as to that Over capital wireless for time, wireless the for subscribers we expect

business an However, be continue in driver distinction, a wireless many despite to our to for success organization will significant our that come. years as

paging We platform. have our integrated the we system, majority deeply of the line, of Spok be as Go consider service a to part

continue last we as with the Spok we This in Spok our the the to development As undertaking become made unified since we��ve just platform workflow leader first clinical sales collaboration past, complete pressure laid out announced week, operating availability our communications customers. of on support margins have the platform as and execution will has new in progress XXXX, in significant investment to Go put and our Go.

in XXXX focus Go selling the while acceleration maintaining Connect internal efforts maximizing Go new and Spok the coupled is our for development subscriber base. of of to and wireless Care with Our Spok platform, balance Spok our sales

on growth. provided rewarded our key focus a entire the senior of driver customers, and constituents live we As with journey. constituents and in the we strategy future On team, behalf always, It's appreciate this support made that work. communities value investments which in a we of be our efforts place. why yielding as remains us employees platform continued unique revenue, EBITDA first our have operating create along our investors the communication and believe clinical creating cash management in all and of our ultimately and will the powerful pivot the flow our including stockholder long-term We

quarter, trends Also of sequential more erosion our full as well strong Now software particularly and in including turning the year fourth a as software yearly sequential improvement continued were included wireless reduction continued quarter with in to results. We pleased the the than seasonally of booking. in wireless declines. slowing operations unit growth a in XXXX paging fourth the bookings XX% revenue growth

and balance our the the believe are our to of offerings maintain infrastructure. direct we of continue We made investments product in our and sales the results we have these accomplishments strength team Overall, enhance sheet.

capital us our more $XX.X allowed against dividends to XXXX to returning than repurchases. to share in of generate allocation stockholders form ability Our million the and our strategy, in continue to execute cash

provide and will before details full our highlight on that, shortly. development LaLonde John and Wallace want results year. I and to quarter performance financial fourth the activity But XXXX for Mike

First, consolidated continued Year-over-year million driven as was the software year-over-year in a revenue of our attrition demand remain wireless approximately annual resulted performance year. and range. slower anticipated mid wireless services than large declines XXXX, $XXX.X by from part for at reduction prior single-digit rate revenue, in in down a for $X.X million solutions X.X% the although in

new on was million $X.X also and approximately revenue the as developing prior communication platform. cloud-native integrated XXXX our Software in year down we in focused

not levels see XXXX, strong revenue renewal are software software with contracts. we very trend we While of satisfied maintenance on did in a continued rates

qualified marketing to continues Also, sales leads our grow. pipeline of

where solutions call existing both RFPs. Our as completed management, American of smartphones market remains other busy clinical center secure XXX in XX sales more year than and communications, also North alerting work emergency texting, performed they strong for as specifically we demos, very and and new our team was statements last organizations approximately sold solutions and XXX to engineering among train nearly help Demand customers. for customer hospitals healthcare notification

unit again particularly added pleased to our we additions, that come of we a key and space. Noteworthy, revenue XXXX ARPU. XXX,XXX XXXX subscriber see were continue churn, in with gross net takeaways to competitor our our base, revenue as trends subscriber were in to wireless for expectations and exceeded new in from many improve placement Next, gross units this from

totaled Our year of year-over-year rate down XX,XXX, of units the the year. year with from paging was net the prior lost consistent prior during number unit erosion levels as X.X%

prior for a year XXXX. was Our year-over-year rate saw XX sharp and XXXX, the the of declines X.X% improvement double-digit revenue wireless from reduction we point basis only erosion from a to prior

performance are and we substantial XXXX. progress on of operating or and with operating our we achieved number strategic business. in exceeded in results the our continue in make fourth quarter these the key investments pleased our measures a Overall, We to key expectations met as we company's

in to partnerships key sales addition development, financial strategy product agreements. performance, was including other In areas made several and our strategic and progress

a system education new logo and highlight installations, couple the we admissions In with healthcare eight a Spok we inpatient installations system customers. healthcare locations, of not-for-profit for XXX and I a signed more large programs. did residents, fellowship than as XX,XXX were to the XXX operates North medical XX new deals. nearly our During new residency XX a you. for than for of figures, Central with Out more and outpatient of three based October, those, Their It of more net deals deal than includes six-figure XXX graduate physicians patient new hospitals, revenue. six-figure X,XXX want six-figure quarter, solutions employees.

to renewed partnership. Spok. with XXXX, during the complex upgrade Care needs. planned due staying In multiple team This The for In our to execute been healthcare a will Spok X.X Spok consolidation to competitor key valued and customer leverage this on for October, failed the years. organization organization than Spok has Connect a site with The system's rather upgrading solutions time a they switched competitor executed migrations enterprise-wide to for on Spok XX $XXX,XXX efforts. close sensitive was

does between to healthcare years. employees XXX new tax been staff. the They customer Another I'd Southeastern XXXX locations, for has hospital beds has a physicians not of X,XXX a Spok around like XXXX. customer, This community. three research highlight XX from organization subdivision dollars than and receive five This system teaching is and in the political XXX hospitals state on self-funded and more acquired

while quarter. expansion Connect stayed Last in messenger were X,XXX at the Spok competitor a our Care needs. their with for of We so are to organization with licenses upgrade so five-year secure Spok the Spok transition fourth Mobile doing physician level. close using just executed strengthened These and In couple year, on and messaging, in not they of CMIO locking our clinical examples the an was deal our during for partnership in $XXX,XXX the a activity our turned the the solution. pleased collaboration they of to October,

Spok XXXX, the marketplace. to an industry-leading in continued Finally, reputation build in

accomplishments area. of me some give a brief Let you in this of our overview

year sectors. and than new added for the First, XXXX, full in more we primarily XXX the healthcare accounts, government

speakers announced year, notably were at and the with for and Web giving security, strategic during keynote infrastructure, cloud customers partnerships, excellence in management conferences. solution. AWS, agility of XXXX the numerous services Amazon cloud-based services breadth we complete in depth with Spok communication most real-time Services Also or a Additionally, our key enterprise

U.S. the healthcare Next, Spok one Black all hospitals communications the solutions to and platform Also, of provide system to we secured number continue Book Market by Research. as recognition for received

News and & World Report, Hospital. Children's one also Adult Best Best Hospitals of the

depth Finally, We to to intend we experience carry and during the new continued management team Chief XXXX into Matt to Chief Tim this Dr. with all Medical to the Tindle. long-term our Mesnik and Officer, add Officer, year, Spok growth. Information stimulate momentum

outlook, capital Mike? matters the in Wallace, development strategies detail first, XXXX our our provide I highlights Mike will Officer, John will on allocation and will you Financial recent efforts. Technology have minutes. LaLonde, But Operating and additional Officer comments Chief review a on our more of Officer our few Chief governance Chief and and quarter update financial

Mike Wallace

Thanks, Vince.

I quarter contains fourth year again call. review the than operations and encourage business will to this it I financial to review highlights about and we financial conference on later XXXX, our which would information cover Form expect for performance full we you as Before far XX-K, more our our of file today XXXX

were the believe it performance year sustained for we XXXX positions our us for quarter overall and Vince in and generally of improvement noted, operating pleased XXXX. As full with fourth

progress with satisfied not of flow management, bookings of cash significant long-term record by made net Sustained attrition software continuously in combined were goals. in in million business provided resulted wireless with XXXX. and we meeting levels revenue low levels focused operating in XXXX, expense in $XX.X our activities continued While was revenue,

achieve $X.X to of was share in Spok of dividends we million, also for and to of cash in able return this $X.X continue the investing while to our shareholders our as business million performance form back growth. long-term repurchases

a solid equivalent operate And beyond. financial in XXXX earnings time line of on goals information sheet Our platform to against as execute We with of the cash, statement strong and In by is review and debt-free million full us tables SEC much at provides release we line and to in XXXX are our fourth XXXX. a that balance I believe our contained well-positioned a since XX, filings. quarter long-term this today, will our short-term investments $XX.X cash and interest remains a company. basis, continue December and balance not year of income

extent have about of I the However, quarterly to that our to address the be financial would results, you questions this call. them glad Q&A specific during portion

brief a specific guidance four operating I on morning and These expenses, Rather, to include financial XXXX. revenue, of our this our review want sheet areas. focus for balance

the quarter down of in total with XXXX. quarter of of million First, fourth XXXX, from prior the with in revenue fourth the in line million was $XX.X respect quarter revenue to $XX.X and

X.X% $XXX.X Full $XXX.X XXXX. XXXX of of revenue year in million, million from was down revenue

bookings recognition license the our the has bookings revenue skewed slightly software to Looking of the year-over-year services, million but and $XX.X associated $XX.X was lower but revenue $X.X quarter of million and result the XXXX. total software million equipment positive revenue software primarily license equipment of and bookings. revenue, of prior revenue backlog, fourth heavily which at revenue being mix of quarter, impact of revenue the on not This does immediate million down from up lower operations of to revenue quarter in increasing in a of from being have as slightly in quarter the a due of our $XX.X more fourth decrease was the basis in

software renewal that maintenance XX%. of fourth was approximately said, the sustained quarter With for by revenue supported rates revenue

increases quarter. year, on a services X.X% For license of and mentioned revenue, offset were and only full basis. saw Wireless prior equipment respect respectively by fourth and the positively in but declining remained the the revenue the revenues year-over-year with same quarter maintenance play solid by we X.X% from to out X.X% for dynamics to just

another full X.X%. by this the half maintaining gross Noteworthy, and generate impressive additions, record revenue a X.X% For of in sales while – the result wireless wireless an low was historical performance erosion XXXX, revenue of to reflected again team down reflects from wireless churn to unit minimizing our low levels. slowed This significant XXXX stable year, second pricing.

operating to turning expenses. Now

our full increased reductions impairment costs, primarily expense This prior on compared goodwill administrative basis. in to million XXXX, given and development and depreciation, expense amortization the decreased and XXXX, Spok the by same Go assets. and down in XX.X% increased intangible For with Depreciation, and research platform and year offset XXXX, accretion $XXX.X amortization, quarter excluding of due lower accretion fourth year the reflects in totaled investment amortization associated a and million, the from year. of expenses, charge primarily of operating in year-over-year both our adjusted partially efficiencies in $XXX.X periods to general performance full level

intangible the Amcom expense due period assets As resulted remember, we year. amortization rebranding have in you which may that for with our to associated revised amortization in in XXXX, the the acquisition, increased

value annual During determined business, the an was of the the of fair assessment and it our Spok's fourth quarter, recent that common decline Based carrying we assessment goodwill. value estimated resulting that the impairment. on performed company, the value given of in in the the of stock, market exceeded

confidence our management's me point let of impairment not in in the out future the reflect belief, However, our business. does value

for healthcare We set strong. significant Go is significant remain create to the continues outlook will a believe Our value in to need the Spok meet years. shareholders and marketplace coming in

company has the file market fourth how our XX-K, which For the today. value again non-cash goodwill to an assessment the XXXX million detailed in derived, we resulted fair $X.X later Note X the in charge of quarter. expect impairment Nonetheless, in please more estimated explanation of a see

with Excluding XXXX a net the of per to loss levels. which appropriate more is in believe the impact change look include goodwill, more our of charge, were any not results, loss the we since consistent the assessment XXXX at and did way

million quarter wireless Next, for were the to purchase our pagers were primarily the our approximately fourth and support capital customers. expenses and of $X.X in XXXX infrastructure of incurred

of CapEx should over in decreased and the strategy the full believe support development. from Go the our year, needs support major to million, capital portion flat XXXX, We we $X.X capital down remain the platform our requirements are Spok that $X.X generally reflecting past that level expenses million For time. totaled to

through all a offset years Finally, regular to we looking in in income net up as expect the us approximately XXXX in the DTAs at expire of we consist pay allow foreseeable the these our from XXXX. our million prior significant have million availability virtually of year-end DTAs, deferred federal amount will level. tax Based year-end taxable at $XX losses, operating the income. tax DTAs assets The to these federal which $X.X or not for DTAs DTAs, do primarily on of future

And fourth in an earnings financial lastly as schedule for for to detailing the wireless it’s with have release, with respect software our additional annual and year. generation XXXX. typical XXXX, our our guidance our we of our this included quarter for components expectations Included in guidance Spok’s revenue guidance,

$XXX comprise from $XXX end the range to the and of at range $XX to low levels XXXX XX.X% XXXX guidance of revenue low end total range that to from at the a – million, we revenue to million. expect million of the total, software consistent Included expect million $XX range. We high the end with in improvement

expenses, expects on operating to excluding to would million range and to depreciation, that trends range subject adjusted you current $X.X $XXX our trends $XXX accretion from Spok amortization once I projections million, Finally, and expenses to to always again those that million based change. remind million. are from $X.X are capital

will to I John John? the call will that engineering efforts. who over our update LaLonde you turn software With on

John LaLonde

give third Spok on Go and customers. to everyone. good recent month Mike, call that you to a major earlier on Vince platform report to development appreciate pleased efforts. release joining and our update brief we our Spok’s I’m Mike morning of available made Thanks, the Cloud I this today’s Native

from release beginning in outstanding excited person. and will clinical customers to this Spok XXXX truly all automation an year an this of to Orlando It are in in interest functionality high with be month already new in our for process level and earnest. conference showcase workflow We next the of see very selling

healthcare a of scheduling are single the contact clinical, earlier for platform poised to call, center we mobility, through transform integrated our workflows and described during believe offering landscape cognitive strategy the solutions. we Vince As alerting,

XX very industry partnered IFA-compliant platform have the over proven and Amazon the Spok design We AWS closely latest to with Go months past utilizing the services.

time clinical has R&D It platform automation the our performance, This we the best-in-class years. companies in seasoned to also of assembled with past that team effort and architecture have a in to Few means has cloud system expertise level within required been real capabilities clinical enterprise which to this engineering, the reliability able have of security. communications an develop segment Spok top-notch requires and true grade yielded market two workflow over level investment manage. outstanding make

significant solutions Go I represents market and innovation a of feedback the delivering have patient leap forward frankly the Spok bit and I’m report over delighted face care platform customers The in is prospects and dozens staff in – much the regarding XX demanding. increasing been new months, relieved burden the to the past suitability innovative met clinical that Spok has with unmet long-standing Go of to needs that overwhelming today. a address of coordination

It’s This innovation innovate with releases combined. mitigate literally to the out staff and also a hundreds third second Spok is this of imperative our that’s thousands than features innovation. collaboration organization capabilities major new partners release, release, first combination doubled clinical our that set of more indicates of help hours safety. of accelerating in Spok organization. and We its newly burnout new pace ways Go and This and close collective the new as our to of address we clinical Go risks patient – a as platform well across new

clinical partners buy expect pace we innovation Go to and customers in participate program, this new this continue. into As Spok’s Spok year

Vince with members pursued approach the GE previous my leadership to we Key put in at resource a onshore-offshore place Medtronic R&D This roles in models based successful As on been has allocation. Healthcare. described achieving and balanced earlier, quickly from of these engineering engineering balance leveraging aided have prior which long-term of the leadership companies come firms relationships global course and also over our and team XXXX. as Spok goals our to

outline is background latest the for Go Spok to new platform. you our of capability systems of single scheduling on-call few This scale now let just in capabilities become release me development given efforts, significant imaging centers Having our service the multi-site surgical a clinic Native take a dozens included Cloud And new most of meaning the both is from the clinics, to with role-based a the ambulatory hospital hospitals, service. and multi-department largest centers. or health new and moment

performance The AWS and to remains in due of different schedules service is Elastic our total always of capabilities. to Compute the use and number

scales then in scheduling when activity computing automatically resources infrastructure the we – AWS down everything effect draw managed can while instantly browser. and needed to awesome. computing on-call activity on-call of service optimize this costs. reduces and Our up minimizing This is where can computing lower system be increase web quite with resources through can system within Hundreds accessed new schedules means and that your be configured on-call as and and created responsiveness needed favorite horsepower

has of include and Spok schedule, provides an device share role. and is balance on-call in on, acknowledge effectively the one determine provides readily device source to the Spok’s their mitigating on The glance enterprise that’s not platform directory more recognized Spok designated the based important email. analytics other for as on-call global paging loads a potential directory extended than staff enterprise they schedules for Spok in-shifts enterprise value no have and for for being information. thereby more and support clinical example, to Go directory truth been long shift Customers global

apps integration the and now new radically with in value directly With been healthcare organizations. for Spok’s cloud with secure easier it enterprise and access has global made

mobilize New members workflow can EHRs are orders configurable escalations. can desktop care have integrated packages any with to – with been priority by added labs, routing radiology, customers our now which We we apps. fully high for clinical kind team mobile of and

now user. presented real-time chats an results organized, feed is a activities to offers and Speaking app concept, Android. global of Enterprise of of communications group network Spok lab our a paging with clinical one-stop can to mobile, search from X.X for pages our integration for our infrastructure, released new for all and each which version OS tailored capability mobile innovative we iOS, This filtered version activity and shop a iPad Go the in be new way

ability on-call all directly schedules users Finally, app. their to the for new mobile within has the of this see version

the in functionality have reminder, as Finally, now. all I discussed today is live production a and

be will in drops, our of course of which customers best Amazon, features SaaS others over functionality into established with and Google, get follows call hands quickly at practices XXXX to the zero Additional more Microsoft new feature and the added downtime. what we

I’ll Vince back closing we to open comments up your before it for turn At some it questions. to point, this

Vince Kelly

Thank you, John.

With respect goals outlook. Okay. to and our business key

Let moments me outline strategy. take few our a to

As shift was about four segment. past, upon ago, in we title for we’ve talked in about a the strategic years direction our embarked customer transformation healthcare, our largest

This very or for strategy clinical and is – alarm Spok solutions single plan center five-year offering from called collaboration pivot them platform point Go. a integrated intangible offering product messaging a customers to move and signaled communication cloud-based intentional that a our single management secure solutions call software,

communications market, on simplification make resulted decision further the potential needed their platforms, for to across the customer too competitive unified us we focus opportunity different needs, previously we’ve many market this our our our Spok in many been shift business IT we as versions outlined, customers communications and and approach they Go more multiple enterprise, multi-billion positioning. several As provide different as reasons penetrate healthcare customers dollar platform including a products were offering on to healthcare telling

a Native As communications. concluded healthcare no offers platform integrated that single else we one for Cloud

proud excited and of and our platform us showcase innovation been at next-generation customers to Go. a month, our Listening we’re the to work our partners what result with Spok of conference HIMSSXX telling have our next as

foundation is strong. communication of Our clinical core

employees work of have proud support done are our mission. in of the We this

much together We since we have Spok. accomplished became so

making collaboration We focused Go are healthcare platform Spok the laser leading clinical inside industry. and communication on the

opportunities this respect So deliver organic and achieve guidance, critical to investing growth. in commitment communication strategy are believe clinical we our and investments We long-term collaboration our near-term our drive and platform industry-leading with our with stockholder long-term to that as XXXX to value. background, continue these to and address year supporting to

need However, we our continue investing platform. that Spok our the bulk completed as in Go began selling have what we investments future, to we we believe of

low are of flat holding adjusted the end For guidance that operating we our levels. XXXX expenses, reason for to range XXXX essentially

XXXX. $XX.X prior million, of R&D As from nearly increase a backdrop approximately in totaled levels. expenses year one-third an

And year million, a increases XXXX, XXXX, XXXX. totaled And of R&D year. XXXX expenses expenses XX% from XXXX. R&D expense million, continue $XX.X in a $XX.X R&D XX.X% from the in totaled increase XX% We will in In an expenses that increase last believe nearly totaled $XX.X increase more other to expense outlined reductions in R&D prior a steady in level. by that be million, XXXX anticipate a Included will and primarily offset in Mike in at expenses the XXXX that approach pace minutes although in slow much state increase of few R&D we slower expense categories. level, will ago, XXXX, in

provide through With growth, are drive included strategy, maximizing dividend earnings. to and value potential multifaceted growth to term has and share our and streams repurchase, accretive acquisitions long-term long overall and strategic our capital allocation could revenue been strategy, goal infrastructure that capital business stockholder investments our respect additional achieve to improve and sustainable while allocation our that is operating organic platform to

XXXX, share dividend. For paying quarterly per our $X.XXX continue are we committed to

repurchases on report to earnings. communicate capital and We we a when with other our will continue quarterly to evaluate our capital share our quarter strategy dividends, of plans respect each with uses you basis allocation and

We to Finally, to knowledge and at matters. few and I clinical want on Bobbie recently to Board. depth IT have of part team. Board as brings of our added Directors. our Advocate of Byrne our Byrne, touch are delighted her And governance Dr. Dr. CIO of Aurora we to a Health breadth

Directors Board the expertise. professionals experienced committed we to appointment a bring demonstrates, are of the who of best-in-class Dr. having Board relevant As with Byrne

in to expect efforts our We this continue regard.

you Our those as on progress. Nominating we and Governance report Committee more continues results working will with and Korn we make Ferry, to

while Board, make leader and expertise clinical our to We as solutions. healthcare are and adding collaboration our in committed a communications transition to we software as maintaining stability

paging as strategy flow company and the a the we in growth and platform and engine believes and strong deeply enhance situated stand-alone operations our that We integrated Go moment largest Spok are organic the a its offering in base. an our and configuration run perspective, our source world, paging software a business From optimally continue with has subscriber Board in devices. operations and paging of at cash user the to

we presented Board While us. considering by that assured strategic offers all comment to rest received our not do alternatives is on open the to company,

While we us at results strategic that any We are no us, visibility Spok fully will R&D spend doing of development revenue in way and to have inflection not also Spok but any that better that cancel have, the I into to want believe partner that note profit are consider future. on any best we an Go, presented believe this we stock. to we that important alternatives financial of is would committed view from our XXbX-X ahead continue best I significant the and value. so remain yet that platform. to plans Spok and strongly I have believe so strongly point, we my shareholder plan, believe realized Board’s in to personally maximize and our to and or I’d and have approach is to acquirer independent pleased sell and

call questions after your operator ask ask We Operator? we’ll At take follow-up to that questions initial time one that additional point, a limit as to open I’ll for questions. your the and the allows. this you and

Operator

question, a Instructions] [Operator do have Ryan We Palogic. Vardeman,

Ryan Vardeman

are cloud taking questions. my legacy you What continuing the business Thank those goals for on lines. XXXX bookings Congrats maintain to for guys. Hey, the platform?

Vince Kelly

for platform revenue, current guidance gave goals bookings. in did issue We not We our for our but specific bookings our Spok guidance. or legacy not for Go

Ryan Vardeman

it Okay. that five like look you the of the are – development at customers things a years on spend. sounds are than million your this it this platform. to it we sales We development to during and relates marketing. call exciting, spent started this as very But doesn’t million seem continuing we’re over $XXX I more Yet our solution. $XX any and R&D when mean into said you the certain in period, over success of lot

help just And you’ve say like start you to when, to be to and trying Next numbers today to you these guidance to that unveil last the understand I excited this when of how the Thanks. this I to thought targets I and that several can of years, in were would platform, for kind see some the some the was be you’d the you bookings, that provide for get think that But quantify going said of that day opportunity got? that seeing market metrics. confidence going Gen aspirations goals, we

Vince Kelly

out your appreciate question your the this in what to for We I to new bookings going were We software thought your Yes. get platform. We frustration. as patience a bookings that respect years. would support platform in in result we missing and actually we deliver. new and your your XXXX Ryan. our thought I when didn’t higher our shortage plan. totally And the and legacy, we wasn’t were of hit deliver We delivering the knowledge be for with there would of platform for bookings because us Thank behind have platform, totally on over this platform. are we short first question. you goals. resulted your

never can been yesterday you we’re tell right shy that a little out our company list Go of looked for of that there. in Spok about sales I’ve than future the pipeline the of large I gun showed very leadership bit now. more Directors. our at this to I am excited Board So a terms I numbers putting actually

at meetings demonstrate We HIMSS a of to ton up this set have platform.

clinical is got we to We right changer We said game now company. big be two for in years this investment as conversations EHRs. and the we’re result going think Amazon this of We’ve on innovation to we’re partners. with we of making it, meeting great a leader this communications going big and additional in with for hope were thing the weeks, with clinical a meeting collaborations some be

to we huge interest respect see a large thing, numbers think projections to will with these cycles you healthcare budget see I this customer actually appreciate like that what have one sell in institutions and and last have that oftentimes year. We these

expect bookings, XXXX said with Now platform. under we and our in we’ll you the be that, we the up never the bookings of forward report having Majority bookings. of to as results about do actual belt get however, We given will new we in those traditionally guidance. the And can half what as respect and more on second see get we guidance bookings those to we’ll visibility significant year. truing

think the I we question. something that’s to about. that so And appreciate But need

can company we under going and I these And that to successful. we’ll some me, partners Fair want signaling what that innovation get belt, just as we of some these enough? is And to bookings this know I get expect new you see from be of about soon clinical as our the do can to market.

Ryan Vardeman

I mean, I you. thank yes, don’t,

Vince Kelly

Ryan. you, Thank

Operator

Okay.

further in have questions this the no at time. We queue

Vince Kelly

to you results next day. you speaking of after Have the Thank us joining roughly. great We quarter look forward everyone. to a we this end in for again with release our luck morning. April, Good Okay.

Operator

and gentlemen. ladies teleconference. concludes today’s you, Thank This

disconnect. may now You

Spok (SPOK) 29 Feb 202019 Q4 Earnings call transcript